Urban Villages in India are those assimilated by expanding cities or new towns. While the problems for villagers, new residents and administrators are different, the challenge for all is that of the integration of the village population into the emerging urban scene. When cities expand gradually over the hinterlands, the villages on the fringe areas become transformed at a slow pace, but in the case of new towns the transformation is more immediate, with a shift from agriculturally based rural to urban - as in the case of Navi Mumbai new town. The problems and challenges in such cases are manifold. This article attempts to explain how this process has been attempted in Navi Mumbai, which is a self-financed new city project. The article puts forward the problems from the local perspective and concludes that there is no perfect solution to integrate villagers, despite the innovations tried in Navi Mumbai.